Many luxury hotels recorded significant increases in revenue and RevPAR in 2011, with brands in developing economies recording the highest increases.

Thursday 19 September 2013, Amsterdam

The global luxury travel market recorded strong growth in 2011-2012, after a significant decline in 2009 and modest recovery in 2010. One of the key drivers of this growth was the increasing number of high net worth individuals (HNWIs) globally, primarily in the BRIC countries. This growth in global luxury travel is expected to continue until, at least, 2017.

Global luxury hotels record revival in demand after the financial crisis
The global luxury hotels sector experienced a major downturn during the recession of 2009, with double-digit falls in revenues across most regions in the world. However, the sector recovered in 2010 and 2011, with improvements observed in key hospitality performance indicators such as revenue per available room (RevPAR) and average daily rate (ADR) in most regions. Many luxury hotels recorded significant increases in revenue and RevPAR in 2011, with brands in developing economies recording the highest increases. However, the near-term outlook is cautiously optimistic, with continued concerns over the eurozone crisis and economic slowdowns in key emerging Asian markets such as China and India. Despite these concerns, sustainable recovery is expected in the global hospitality sector, led by improving industry scenario and signs of economic revival in the US, the world’s largest luxury hospitality industry.

Use of mobile technology to make luxury hotel companies operationally efficient
Luxury hotel companies around the world are expected to focus on achieving operational efficiency, reducing spending on customer services that offer little value, developing the use of mobile technology, and targeting high-value customers. Luxury hotel companies are increasingly using mobile technology to enhance value and transforming how they interact with customers. In 2012, leading luxury hotel brands had mobile websites and offered mobile applications

New customer demand to drive growth
Increasing optimism in the luxury hospitality industry is prompting companies to customize their offerings according to new demand trends following the recession, particularly from more value-conscious customers. Luxury accommodation customers, often traveling as multigenerational families, now prefer destinations that offer exclusive access to luxury accommodation in prominent locations. Sustainability, exclusivity, increased focus on wellness, and mobile and internet technology are also likely to be key trends in the luxury hospitality sector. While cost is not typically a concern for luxury customers, they will only be willing to pay higher prices if quality of service and experience exceed expectations.

Global hotel construction outlook is improving, led by a revival in the US hospitality industry
The global hotel construction market has improved following the recession in 2009, with large amounts being invested in the hospitality sector. Growth in investment in hotel construction was led by recovery in the US economy, improving employment trends, and growth in the luxury and upscale accommodation categories. However, investors have been particularly careful since the recession, focusing mainly on cities with significant demand from leisure and corporate travelers. As of October 2012, around 33% of major hotel construction projects were being completed in the world’s top 10 tourist destinations.
    
BRIC countries to drive growth in the global hospitality industry
Substantial and growing middle-class populations with rising disposable incomes, and significant improvements in domestic tourism infrastructure in recent years in the BRIC countries, are key reasons for global hospitality companies to build and expand in these countries. These countries have significant and rapidly growing domestic travel and accommodation industries. Some global hospitality companies are customizing products and developing specific brands for these markets, and forming alliances with local hotel chains to compete effectively with domestic brands.

This report offers:
• In depth analysis of the key trends and issues within the global luxury hotel market, including a SWOT analysis and a look into the construction market.
• An overview of the trends of the luxury hotel market within the BRIC countries including domestic tourism trends, inbound tourism trends and outbound tourism trends.
• A segmented breakdown of the global luxury hotel KPIs within areas such as The Americas, Europe and Asia-Pacific.
• An insight into an assortment of global luxury hotel profiles with details from such companies as Marriott and Starwood Properties.

This will facilitate:
• The increasing of your knowledge of the global luxury hotel market as a whole.
• The increasing of your knowledge of the factors which affect the success of luxury hotel brands.
• A clear understanding of the luxury hotel market and the rates of growth between global regions.
• Greater understanding of the companies within this market and how they continue to succeed during the recent economic uncertainties.

Target audience
• Travel and Tourism companies.
• Suppliers to Travel and Tourism companies.
• Contractor research organizations.
• Trade body, academia or other industry observers.
• Companies involved at any stage in the manufacturing, procurement and marketing process.
• Marketing and advertising agencies.